SRAVANTI ASSOCIATION FOR RURAL AND TRIBAL DEVELOPMENT,RAJAHMUNDRY V. INCOME TAX OFFICER ( EXEMPTION WARD), RAJAHMUNDRY

ITA 398/VIZ/2025

AI Insights

The case involves the Sravanti Association for Rural and Tribal Development, a trust based in Rajahmundry, which appealed against the decision of the Commissioner of Income-Tax (Exemption), Hyderabad. The CIT(Exemption) had rejected the trust's application for permanent registration under Section 80G of the Income Tax Act, 1961, citing that the activities of the trust were not in accordance with its objectives as per the registered deed. The tribunal found the CIT(Exemption)'s order to be non-speaking and cryptic, lacking specific findings or material analysis to substantiate the rejection. Consequently, the tribunal set aside the CIT(Exemption)'s order and remanded the matter for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716708 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 19-06-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 80G

Judgement Text

" आयकर अपीलीय अधिकरण, विशाखापटणम पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL Visakhapatnam Bench श्री रवीश सूद, माननीय न्याययक सदस्य एिं श्री एस. बालक ृष्णन, माननीय लेखा सदस्य SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER AND SHRI BALAKRISHNAN. S, ACCOUNTANT MEMBER, I.T.A. No.398/Viz/2025 Sravanti Association for Rural and Tribal Development, Rajahmundry. PAN : AADTS0910J Vs. The Income Tax Officer, (Exemption Ward), Rajahmundry. (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Shri GVN Hari, Advocate. राजस्व का प्रतततितित्व/ Department Represented by : Shri Badicala Yadagiri, CIT(DR) सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 07.08.2025 घोषणा की तारीख/ Date of Pronouncement : 20.08.2025 O R D E R प्रतत रवीश सूद, जे.एम./PER RAVISH SOOD, J.M. The captioned appeal filed by the assessee trust is directed against the order passed by the Commissioner of Income-Tax (Exemption), [for short “CIT (Exemptions)”], Hyderabad, dated 24.01.2025, wherein the latter had declined the application filed by the Printed from counselvise.com 2 ITA No.398/Viz/2025 Sravanti Association for Rural and Tribal Development assessee trust in “Form 10AB” for registration u/s. 80G of the Income- tax Act, 1961 (in short ‘the Act’). 2. The assessee trust has assailed the impugned order on the following grounds of appeal: “1. The order of the learned Commissioner of Income Tax (Exemption) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Exemption) is justified in rejecting the application filed by appellant in Form No.10AB for approval u/s 80G of the Act. 3. Any other ground that may be urged at the time of hearing.” 3. Succinctly stated, the assessee trust was granted provisional registration under Section 80G(5) of the Act, vide order dated 31.12.2021 for the period 31.12.2021 to A.Y. 2024-25. Subsequently, the assessee trust applied for permanent registration u/s 80G of the Act in Form No. 10AB on 18.07.2024. 4. The CIT(Exemption), Hyderabad issued notices dated 10.10.2024 and 19.12.2024 seeking details. In compliance, the assessee trust responded vide its part reply dated 28.10.2024 furnished the documents/information called for. 5. However, the CIT(Exemption), Hyderabad, vide the impugned order dated 24.01.2025 in “Form 10AD”, rejected the application for registration filed by the assessee trust. The CIT(Exemption), though Printed from counselvise.com 3 ITA No.398/Viz/2025 Sravanti Association for Rural and Tribal Development observed in his order that the activities carried out by the assessee trust were not commensurate with the activities as per objectives of the registered deed of the trust, and hence, were violative of the provisions of Section 80G of the Act, but there is no whisper in his order about any such activity of the assessee trust which was not commensurate with its objects. 6. We have heard the Ld. Authorized Representatives for both parties, perused the orders of the lower authorities and the material available on record. 7. We have thoughtfully considered the order passed by the CIT(Exemption) and are of the view that the impugned order is a non- speaking order. The CIT(Exemption) has not brought on record any finding or material analysis to substantiate how and in what manner the activities of the trust were not in accordance with the stated objectives. We are of a firm conviction that the rejection by the CIT(Exemption) of the application filed by the assessee trust for registration u/s 80G without passing a reasoned order violates the principles of natural justice. It will be apposite to observe, that non- speaking, cryptic, and mechanical orders passed by quasi-judicial authorities are not sustainable in law. The CIT(Exemption), while Printed from counselvise.com 4 ITA No.398/Viz/2025 Sravanti Association for Rural and Tribal Development disposing off the application filed by the assessee trust for permanent registration under Section 80G of the Act was expected to provide a reasoned order and specific findings after considering the material on record. 8. In view of the above, the impugned order dated 24.01.2025 is hereby set aside, and the matter is restored to the file of the CIT(Exemption), Hyderabad with a direction to pass a fresh speaking and reasoned order in accordance with law. Needless to say, the assessee trust in the course of the set aside proceedings shall be afforded a reasonable opportunity of being heard and remain at liberty to submit any further documents or explanations as may be required. 9. In the result, the appeal filed by the assessee trust is allowed for statistical purposes in terms of our aforesaid observations. Order pronounced in the Open Court on 20th August, 2025. Sd/- (एस. बालक ृष्णन) (S. BALAKRISHNAN) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (रिीश सूद) (RAVISH SOOD) न्याययक सदस्य/JUDICIAL MEMBER Hyderabad, dated 20.08.2025. *TYNM/sps Printed from counselvise.com 5 ITA No.398/Viz/2025 Sravanti Association for Rural and Tribal Development आदेशकी प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/The Assessee : Sravanti Association for Rural and Tribal Development, D.No.86-2-5/1, Pragati Marg, J.N. Road, Rajahmundry. 2. राजस्व/ The Revenue : The Income Tax Officer, (Exemption Ward), Rajahmundry. 3. The Principal Commissioner of Income Tax (Exemptions), Visakhapatnam 4. तवभागीयप्रतततितर्, आयकर अिीिीय अतर्करण, / DR, ITAT, Visakhapatnam. 5. गार्ाफ़ाईि / Guard file आदेशािुसार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam Printed from counselvise.com "